In less than 40 days,
Floridians experienced the wrath of Mother Nature’s destructive force. For the
first time in our state’s history, four named hurricanes have come ashore,
causing billions of dollars in damage and leaving millions of Floridians
devastated.

We at the Florida Department of
Financial Services understand residents are struggling during this trying time
and we are responding in a variety of ways.

From an insurance perspective,
our state was prepared. The Hurricane Catastrophe Fund and Citizens Property
Insurance Corporation are two unique programs in Florida that will prevent a
crisis in insurance coverage despite four back-to-back hurricanes.

In addition to these two
programs, we have taken decisive steps to assist consumers in the wake of the
hurricanes, including:

Instituting a moratorium on
insurance companies canceling or non-renewing homeowners during hurricane
season or because they have filed a storm claim.

Working with insurance companies
and policyholders to resolve cases involving multiple deductibles.

Placing a 10 percent cap on what
public adjusters can collect on a homeowner’s insurance claim and
prohibiting them from charging fees up front.

Requiring Florida’s health insurers
and HMOs to waive restrictions on prescription refills to enable citizens to
fill prescriptions in advance.

Urging banks and credit unions to
expedite loan applications, eliminate late fees on loans and waive ATM and
check-cashing fees for storm victims.

Setting up a mediation program to
ensure consumers have a program in place, at no charge to them, to quickly
and fairly resolve claim disputes.

Since the first storm made
landfall on August 13, we have received more than 58,000 calls from consumers.
We have more than 150 department employees in the field assisting consumers with
their insurance needs and concerns.

As we navigate through this
recovery process, other issues will emerge that will need to be addressed. As
CFO, I am committed to helping consumers get back on their feet and start
rebuilding their lives. And one of the best ways to provide that help is to
make sure that residents are treated fairly by their insurance companies and get
their claims paid as quickly as possible.

My best,

The skyline for October is Daytona Beach,
photo courtesy of the Daytona Beach Area Convention & Visitors Bureau.

“Your Money, Your
Life,” a statewide public education initiative formed in cooperation with
financial industry groups and the Allstate Foundation, offers a comprehensive Web site on personal financial
matters.
www.yourmoneyyourlife.org.

FOR THOSE TAKING OUT LOANS AFTER THE STORMS

If you have to borrow money to repair your home in the aftermath
of the storms, protect yourself by being aware of your rights as a consumer.

Unfortunately, this is a time when some homeowners make decisions out of despair
and fall prey to unscrupulous operators who seem to offer just what is needed in
the way of a loan.
These wolves in sheep's clothing are known in the industry as predatory lenders.

Predatory lenders offer easy access to money, but use high-pressure salespersons
and unfair techniques such as inflated interest rates, outrageous fees,
unaffordable repayment terms, and harassing collection tactics. Homeowners can
be tricked into taking out loans that they cannot afford to repay and,
therefore, risk losing their homes to foreclosure. CONTINUED

Florida’s Chief Financial Officer Tom Gallagher has announced the arrest of a
man, formerly banned from the insurance industry, who allegedly sold a
fraudulent medical discount plan to several hundred customers throughout South
Florida. Americ Health Plan, which cost almost $200 a month, included a
supplemental insurance policy that consumers said confused them into thinking
they were buying health insurance.

Reynaldo Gonzalez-Duenas, 48, surrendered today to investigators with the
Department of Financial Services, Division of Insurance Fraud, and was arrested
on one count of organized fraud and seven counts of third-degree grand theft. He
was booked into the Miami-Dade County Jail. If convicted, he could face a
maximum statutory penalty of 40 years in prison.

“Before purchasing these discount plans, consumers should know that these plans
are not health insurance,” said Gallagher, who oversees the Department of
Financial Services. “Some discount card sellers are careful to say their plans
are not insurance, but others are not so clear. Some intentionally give the
impression that they are offering benefits usually associated with insurance.”CONTINUED

GALLAGHER ANNOUNCES THE FIFTH ARREST
OF AN UNLICENSED PUBLIC ADJUSTER WORKING IN HURRICANE-DAMAGE AREA

A Pennsylvania man working in the Fort Myers area was arrested by investigators
with the Department of Financial Services on a charge of operating as a public
adjuster without a license.

Albert E. McBride III, 36, of Prospect Park, Pa., is the fifth unlicensed public
adjuster arrested in hurricane-hit areas and the second arrest of an individual
working for Young Adjustment Company, Inc. out of Blue Bell, Pa. His arrest
followed an investigation and undercover operation by the Department of
Financial Services’ Division of Insurance Fraud and Bureau of Agent and Agency
Investigations. The investigators worked closely with Nationwide Catastrophic
Claims Adjusters.

Florida’s Chief Financial Officer Tom Gallagher, who oversees the Department of
Financial Services, urges residents to verify that the adjuster they are dealing
with is licensed before signing any contract. CONTINUED